Trade entering North America through key ports on Canada’s West Coast is facing more uncertainty after dock workers rejected a tentative labor deal late Friday.

The flow of trade destined for U.S. chemical companies, retailers, and manufacturers is delayed at least two months as a result of 14 days of strikes.

The president of the International Longshoremen and Warehouse Union of Canada, Rob Ashton, has called on the dock workers’ employers to return to the negotiating table and reach a mutually beneficial deal.

The British Columbia Maritime Employers Association (BCMEA) did not respond to the union’s request. BCMEA expressed disappointment over the rejection of the four-year tentative agreement and is waiting for direction from the Canadian government.

Canadian Minister of Labor Seamus O’Reagan emphasized the need for stability in British Columbia ports after the strikes. O’Reagan stated that more information will be provided soon.

The proposed deal was presented by the senior federal mediator. The terms of the deal included a 19.2% increase in compounded wages over four years, a signing bonus of $1.48 per hour per employee, and an 18.5% increase in retirement payout.

In response to the union’s argument, the BCMEA stated that longshore wages have risen by 40% in the past 13 years, surpassing inflation at 30%.

The timing of the strike presents additional challenges during the peak season when holiday items are arriving for retailers. At its peak, $12 billion worth of freight was stranded on the water, with some trade being diverted to U.S. West Coast ports.

Paul Brashier, vice president of drayage at ITS Logistics, reported a two-month delay in product delivery for their clients due to the strike. Rail-bound containers now sit at the Ports of Vancouver and Prince Rupert.

Steve Lamar, CEO of the American Apparel and Footwear Association, estimated that the strike would cause an average disruption of 6 to 8 weeks in the supply chain. The association had urged the Canadian government to intervene during the initial strike.

Rail traffic from Canada to the U.S. has been consistently decreasing due to the strikes. During the first two weeks of the labor strike, over 80% of rail trade was prevented from entering the United States, and there was an additional 12% decrease in trade the following week.

The strike is also affecting the revenue of railroad companies. Canadian Pacific Kansas City Railroad expects an $80 million negative impact on their revenue, but they are working to recover those losses in the third and fourth quarter. Canadian National Railway announced additional trains to expedite container clearance.

The Railway Association of Canada initially estimated that it would take three to five days for networks and supply chains to recover for each day of the strike. After the first strike ended, delays for rail containers were estimated at 39 to 66 days. With the on-again, off-again strike last week, congestion removal is now projected to take 42 to 70 days.

Eric Byer, CEO of the National Association of Chemical Distributors, highlighted the impact on U.S. manufacturing due to the delay in chemicals arriving through Canadian ports. Various chemicals used in products such as drain cleaners, laundry detergents, nail products, and toothpaste are stranded on the water.

Logistics managers and the trade industry are struggling to assess the situation and make decisions regarding ocean and rail transport during the peak shipping season. The complexity of global supply chains makes it challenging to quickly adapt to changing circumstances.

Alan Baer, CEO of trucking company OL USA, noted that trade via the U.S. West Coast has been affected over the past year due to labor tensions. Some shippers have diverted business to East Coast ports, and it is uncertain if they will return.